Ask a CCCS counsellor a bankruptcy question

SteveABC

I went to Barclays after my BR and a snooty lady just gave me a form for a cashcard account and told me it would take two weeks to open. I then went to the Co-op bank and they were very friendly and non-judgemental and opened a cashminder account there and then (as I had my passport with me for ID).

StepChange_Pavan

takingmylifeback wrote: »

Hi,

I completed the online survey on the CCCS website, and this indicated that bankruptcy is my best option. This was months ago, and I am now at a point where I feel I have nowhere else to turn and it's time to get going.

From lurking on here, and other research, I believe I would not lose my flat (negative equity to the tune of about £7,000 at least thanks to the downturn), or my car (it's a little old banger, and I need it to travel to work). There is nothing in my employment contract to suggest I couldn't work for this company being bankrupt (although I am about to check but don't want to do so until I'm sure I'm going through with things just in case.

My question relates to a charity bank account for which I am a signatory - would this be affected by the bankruptcy? I am prepared to relinquish being the signatory, but from experience this takes a long time.

Oh, and I also have a lodger in my flat to help me try and make ends meet - would they be affected by the bankruptcy?

I'll be glad of any advice as I'm not in a good place right now and need to take control of my life.
Thank you.

Hi takingmylifeback and thanks for your post.

Being a signatory would be affected by your bankruptcy if you’re a secretary, chairman or board member. However, if you’re simply able to sing cheques on their behalf you would need to check with the charity to make sure they are ok with this.

Your bankruptcy won’t affect your lodger. You will need to declare the amount that they contribute on your forms though.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

battyboimatt wrote: »

When I called the bankruptcy team about going br, they suggested I open a new account, sooner rather than later, however they suggested, Barclays, Co-op or Nationwide. Is that correct, I thought Nationwide were not BR friendly.

Thanks
Matt

Hi Matt,

It’s up to you which bank you decide to go for. Our clients experiences tend to vary but try Barclays and Co Op first.

Hope this helps.

Kind regards,
Pavan

SteveABC

Hi

A few q's.

I declared BR on 30th March and am having my OR telephone interview next week.

(1) I sent a letter to mtg lender enclosing the keys to my previous property, as instructed by CCCS BR team advising them of my BR. They have written back stating "as payments are being maintained they will not repossess" and "to contact them if I want keys returned or they will be destroyed in seven days". This seems strange as my letter told them I was BR, I enclosed my BR certificate and I told them I would be making no further payments. I also gave them name and address of OR. Should I respond to them or ignore the letter?. I'm sure I read that after BR I should not engage with any creditors?

(2) Same q re: First Plus (secured lender). They had same letter from me as mortgage lender, but have written asking for next payment.

(3) Just prior to BR I cancelled my gym membership as I knew this would not be allowed by OR. They have now written asking for outstanding payment and an additional months notice payment, which I can't afford. I thought I could just cancel, and was not in arrears at the time, so this was not included on my SOA. Can I add this to my SOA during the OR telephone interview next week?

(4) Similar to above - the council are deciding whether I can be exempt from council tax for my old address, even though I have told them the old property is empty, unfurnished and securely locked. I can pay council tax for my new rented property, but will not be able to pay any for my old address too. There were no council tax arrears at the time I moved (paid in full for 2010/11), so, again, not included on my SOA. If the council pursue me for council tax for 2011/12 at old address, can I direct them to OR?

Many thanks for your continued support and guidance.

ThomasCrocker

Thankyou for this! Helped me a lot!

KK9000

Hi,

I was wondering if someone could help.

I need to go BR, I have debts totaling over 25k and i am on income support and incapacity benefit, the issue i have is all the income support, chb, ib & tax credits are paid into my wifes account.

What will happen if i attempt to go BR, I have no money what so ever barely living off benefits with huge debts (occured before i went on ib/is).

timelord34

Hi folks,

Hoping you can help me. I was made bankrupt in 2002 covering business and personal debts and therefore discharged in 2005. I did not have a mortgage at that time. Since then I have successfully applied for credit for various things successfully(i.e. insurance & mobile tel. contracts etc. I have not applied for nor have any credit card debts or loans as such. My credit record is now clean. My income is around £32,000. I have savings of £11,000.

I want to apply for a mortgage for a house costing £85,000. The term will be 12 years as I am now 54 and will retire in 2023.

Am I right in assuming that the 12 year term is the maximum I could get?

What is the maximum I could apply for. I have read that the loan to value cannot exceed 76%, which comes to £64,600 in this example.

Am I right that this is the case?

Graham

capeverde

Im due to be discharged in the next week or so and prior to bankruptcy had accounts with nat west rbs and barclays. I had an excellent credit history and platinum cards with all. When I was made bankrupt I gave all correct details to the OR and listed all accounts. The nat west didnt have any funds in it and throughout my bankruptcy ive been receiving statements and the account is fully operable although Ive not used it. After discharge I understand the onus is NOT on me to tell nat west as I declared everything correctly to the OR. Should I jst start using the account and carry on as normal. Would I be in breach of any regulations?

StepChange_Pavan

SteveABC wrote: »

Hi

A few q's.

I declared BR on 30th March and am having my OR telephone interview next week.

(1) I sent a letter to mtg lender enclosing the keys to my previous property, as instructed by CCCS BR team advising them of my BR. They have written back stating "as payments are being maintained they will not repossess" and "to contact them if I want keys returned or they will be destroyed in seven days". This seems strange as my letter told them I was BR, I enclosed my BR certificate and I told them I would be making no further payments. I also gave them name and address of OR. Should I respond to them or ignore the letter?. I'm sure I read that after BR I should not engage with any creditors?

(2) Same q re: First Plus (secured lender). They had same letter from me as mortgage lender, but have written asking for next payment.

(3) Just prior to BR I cancelled my gym membership as I knew this would not be allowed by OR. They have now written asking for outstanding payment and an additional months notice payment, which I can't afford. I thought I could just cancel, and was not in arrears at the time, so this was not included on my SOA. Can I add this to my SOA during the OR telephone interview next week?

(4) Similar to above - the council are deciding whether I can be exempt from council tax for my old address, even though I have told them the old property is empty, unfurnished and securely locked. I can pay council tax for my new rented property, but will not be able to pay any for my old address too. There were no council tax arrears at the time I moved (paid in full for 2010/11), so, again, not included on my SOA. If the council pursue me for council tax for 2011/12 at old address, can I direct them to OR?

Many thanks for your continued support and guidance.

Hi SteveABC,

As you’ve already declared yourself bankrupt and your OR interview is this week, I’d recommend that you discuss all of these points with him.

He will be able to advise you fully and as most of this is at his discretion, I don’t want to give you any conflicting advice.

I hope all goes well.

Kind regards,
Pavan

StepChange_Pavan

KK9000 wrote: »

Hi,

I was wondering if someone could help.

I need to go BR, I have debts totaling over 25k and i am on income support and incapacity benefit, the issue i have is all the income support, chb, ib & tax credits are paid into my wifes account.

What will happen if i attempt to go BR, I have no money what so ever barely living off benefits with huge debts (occured before i went on ib/is).

Hi KK9000 and thanks for your post.

The fact that your money goes into your wife’s bank account shouldn’t be a problem – you would just need to mention this at the time of your bankruptcy and in your interview with the Official Receiver.

Before explaining how to go bankrupt and what will happen, I would recommend that you get some more detailed advice to ensure that this is your best option. If we do recommend bankruptcy, we have a specialist bankruptcy team that can support you through the process.

To get advice you can either use our online advice facility Debt Remedy, or ring our free Helpline to book a telephone appointment with a counsellor.

Debt Remedy will assist you in completing a financial statement which includes information on your household, employment, income, expenditure and debts. All this information is used as a basis to determine the options available to you to deal with your situation.

Once you’ve followed the process through and completed all the required information you will immediately be presented with an advice booklet, which will provide tailored advice for you based on your current circumstances. It will also provide advice on ways you may be able to improve your situation.

Alternatively if you would prefer to talk to a debt counsellor about your situation, you can book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00.

Kind regards,
Pavan